THE GLOBAL BUSINESS ENVIRONMENT

CHALLENGES AND STRATEGIES FOR

LOGISTICS COMPANY
CREATED BY :
1. AHMET KURT ( 7425237 )
2. OLAWALE POPOOLA ( 7342152 )
3. PRASHANT JHA ( 7588107 )
4. VITRA WAHYU PRADANA ( 7416394 )
5. WAQAS MAHMOOD ( 7636349 )
Logistics
LOGISTICS
CHARACTERISTICS OF
LOGISTICS INDUSTRY
 TECHNOLOGY DRIVEN
E-COMMERCE GROWTH
USE OF ROBOT (Kiva Robot)
USE OF DRONES (Amazon Prime Air)

GLOBALLY DRIVEN
OUTSOURCING
FREE TRADE/MOVEMENT

MORE OF CAPITAL THAN

LABOUR INTENSIVE
Logistics Industry Overview
Definition
Key Features
 DEFINITION
Logistics is the part of the supply chain process which has
responsibilities to make plans, implements and controls
the efficient, effective flow storage of goods, and services in
order to satisfying costumers.

Loading and
handling
Storage
Delivery
Transportation Process
Distribution
Package
Example of Transportation in
Logistics Industries
 COSTUMER
SERVICE

The logistics system

INFORMATION
TRANSPORTATION
SYSTEM

LOGISTICS
MATERIAL INVENTORY
MANAGEMENT MANAGEMENT

WAREHOUSING
 h e c h a l le n g es p o se d to
Analys is o f t
n a l c o r po ra t io n s in t h e
multi n a ti o
u s tr y a r i s in g f r o m k e y
Logisti c s in d
o f t h e g lo b a l b u s i n e s s
fe a tur e s
environment
Challenges faced by logistics Industry
Upward trend on operating cost
Change in supply chain model
Fast pace development in nearby areas
Human resources and talents
 Trends Fast & Fundamental Global Change

Globalization moves Indian population grows as fast in 1 week as the EU population does in one year
to a Multi-Polar The Chinese middle class is consuming more and more of what it makes
world Major new hubs are being built around the world.

Technology led Much of the world is online, mobile commerce is developing quickly
complexity Humble delivery equipment(containers, totes,hangers) are becoming intelligent.
accelerates Increasing dependence on automation.

Rising oil price is slowing the growth in global trade

Cost and time to Marked shift from Air to ocean par in technology and healthcare companies
market pressure Shorten lead time/ Production cycle ; quick turnover
Terrorism has Container scanning will now slow ports down, compliance will tie up
created a new cost management
pressure Security issues can cost hundreds of dollars
 Meeting customer expectation
Just in time
Customers can change delivery orders based on 10 days or less
and in majority indicated that this window can be one day or
less
Customers demanding full transparency to their order and
inventory through the entire life cycle of raw material to finish
goods to sale to sometimes reverse logistics
 Cost Cutting Leading to..
-Lower Salary

-Low Motivation

-Low Commitment

Which leads to strike and delays the process

-Using low quality of facilities & equipment

-Such as unsystematic Warehousing and Local Transportation

-Lack of expertise, Financial Problem and Business Environment

How Did you gain most of your business in last 12 months Outbidding or Winning Contracts from Competitors
How do you expect to gain most of your business in 18 months

1st Qtr 2nd Qtr 1st Qtr 2nd Qtr 1st Qtr 2nd Qtr

Competitor Innovate
s
34%
34%

47%
53%
66%
66%

Challenges in IT and EDI

 CHALLENGES FACED BYLOCAL SERVICE
PROVIDERS
- INABILITY TO PARTICIPATE IN INTERNATIONAL LOGISTICS
ACTIVITIES

DUE TO
- LIMITED INFORMATION TECHNOLOGY LINKAGE
- OVERSEAS CORPORATE NETWORK
- CAPITAL INVESTMENT
 LACK OF SUPPORT FROM INTERNATIONAL FREIGHT
FORWARDER (IFF)
- IFF IS NOT TRANSPARENT TO THE LOCAL SERVICE PROVIDERS
IN TERMS OF SHARING THEIR KNOWLEDGE AND
DEVELOPMENT PLANS TOWARDS ENHANCING THE
INDUSTRY CAN PREVENT SMALL DOMESTIC MARKET TO
GROWTH WHICH JUST CAN OPERATE WITHIN THE NATION
BORDERS

- DUE TO LACK OF LOGISTICS SERVICE PROVIDER OR SUPPLY

CHAIN PROBLEM
- -PRODUCT DEFECT DURING DELIVERIES
- COMPONENT DID NOT REACH IN TIME
- VENDORS ARE NOT LOCATED NEAR THE MANUFACTURER
ON AN AVERAGE HOW MANY HOURS
DOES IT TAKE TO COMPLETE BORDER
COMPLIANCE PROCEDURE
OECD HIGH INCOME- 12.4 HOURS

EUROPE AND CENTRAL ASIA- 28 HOURS

EAST ASIA AND PACIFIC- 57 HOURS

SUB SAHARAN AFRICA- 103 HOURS

Corporate
Strategy
CONSOLIDATION
MULTINATIONAL CORPORATIONS
LARGE FIRMS (CUT COST, EARN MORE PROFIT)
SPECIALISATION
ASSET-BASED LOGISTICS PROVIDER (INVENTORY MANAGEMENT)
SKILL-BASED (FINANCIAL SERVICES)
NETWORK-BASED (EXPRESS SHIPMENTS)
TRANSPORTING AND FORWARDING COMPANIES ( ECPORT DOCUMENTATION,
TRANSPORTATION)
Strategi challenges facing logistics firms today and
in furture
New innovations (Uber)
New efficient solutions( Cost and Time) (Nimber)
Corporate Social Responsibility (CSR) (Norway CO2 emissions)
Infrastructure (India, Africa it will takes more time to deliver)
New competitors ( Better prize and faster delivery options)
Further strategies
(DIGITAL FITNESS) ONLINE POWER
THE PRIORITY OF CONTACT NETWORK IS GONE,
CONSUMER CAN BUY EVERYTHING ONLINE)

REDEFINING COLLABORATION (LOCAL SUPPLIERS)

HTTPS://WWW.YOUTUBE.COM/WATCH?V=IFLXDWBJA14
 Strategic choices of
multinational corporations
 High competition and quick development

Right strategy
 Digital Fitness Consolidation

New technologies, Warehousing,

Innovation, Cost-Saving,
Adaptation
 Redefining Collaboration

Last mile Logistics

PI (Physical Internet)